Arkade Developers IPO: Check Latest Subscription, GMP, Allotment, Listing Details; Should You Subscribe?

Arkade Developers IPO: The real estate development company, Arkade Developers oversubscribed on the first day of the opening of its Rs 410 crore IPO. The public issue that opened on September 16 received massive demand from non-institutional and retail investors. Brokerages are still optimistic about the IPO, and have recommended Subscribe ahead. The latest GMP of the IPO hints at a strong listing ahead.

DAY 1: As per NSE data, cumulatively Arkade Developers IPO received bids of 13,76,23,090 equity shares on September 16, 2024, compared to the offered size of 2,37,75,719 equity shares. That being said, the IPO is oversubscribed by 5.79x.

On Monday, Retail Individual Investors(RIIs) portion oversubscribed by 8.03x, while Non Institutional Investors (NII) portion oversubscribed by 7.89x. However, demand from Qualified Institutional Buyers(QIBs) was dull as the category subscribed 24% of the reserved portion.

The IPO is 100% book building. The price band for the IPO is fixed at Rs 121 per share and Rs 128 per share. The last date for subscription is on September 19, 2024.

After the closing of the IPO, the company is most likely to carry basis of allotment on September 20, followed by initiation of refunds and credit of shares to demat account on September 23. The listing date is most likely to be on Tuesday, September 24, 2024.

To check Akrade Developers IPO allotment details, investors can visit its registrar Bigshare Services' website or BSE and NSE websites. Here is the link of registrar of the IPO:

https://ipo.bigshareonline.com/IPO_Status.html

Arkade Developers IPO GMP:

As per Investor Gain, Arkade Developers IPO last GMP is ₹86, last updated Sep 16th 2024 11:29 PM. With the price band of 128.00, Arkade Developers IPO's estimated listing price is ₹214 (cap price + today's GMP).The expected percentage gain/loss per share is 67.19%.

The proposed equity shares will list on BSE and NSE.

Should You Subscribe the IPO?

In its latest report, brokerage SIMFS highlighted that Arkade is currently looking to spend a sum of ₹2,500.00 million from the Net Proceeds towards meeting a portion of the total project cost for the identified ongoing project and for upcoming 6 projects which have a very broad per unit price point ranging from ₹9.44 million to ₹ 62.53 million in the MMR. Arkade's revenue in FY24, FY23, and FY22 was ₹6,357.12 million, ₹2,240.13 million, and ₹2,371.82 million, respectively. The company's revenue from operations has grown at a CAGR of 66.51% between FY22 and FY24.

Also, Arkade's EBITDA was reported at ₹1,693.75 million in FY24 compared with ₹682.25 million in FY23 ₹699.72 million in FY22. The EBITDA margin was
reported at 26.68%, 31.04% and 30.56% in FY24, FY23 and FY22, respectively. Arkade's PAT was reported at ₹1,228.08 million in FY24, ₹507.66 million in FY23 and ₹508.44 million in FY22.

SMIFS note added, "The company's ROE and ROCE were 46.90% and 47.34% in FY24, respectively which was the highest amongst its peers. We recommend to subscribe to the issue as a good long term investment due to the company's presence in the most lucrative real estate pocket of the country coupled with handsome growth prospects and favorable return ratios and debt levels and attractive valuations at the issue price."

Meanwhile, CHOICE Broking said, "At the higher end of the price range, ADL is asking an EV/Sales ratio of 3.2x, which is at a discount to the peer average. Historically, the company has concentrated on the western suburbs of MMR, but in recent years, ADL has expanded into the eastern suburbs of Mumbai. This business growth strategy, along with its near debt-free status and consistent on-time project delivery, positions ADL for sustainable growth in the future. Thus, we recommend a "SUBSCRIBE" rating for this issue."

Arkade Developers Ltd. is a real estate development company concentrating on the development of premium aspirational lifestyle residential premises in Mumbai, Maharashtra, India's commercial capital.